Redditors slam SEC for posting video allegedly mocking meme-stock traders
A small but vocal group of Redditors took umbrage at the Securities and Exchange Commission’s latest attempt to “educate” retail investors.
Meme-stock traders on subreddits like “Wall Street Bets” and “Superstonk” are complaining that the latest entries in the SEC’s “Investomania” YouTube video series are insulting and even hypocritical. CNBC showed one of the videos earlier this week, possibly helping to spark the backlash.
In a thread titled “A Message to the SEC”, a Redditor said that “the whole market is a stock of memes”, while claiming that the agency allowed dark pools and algorithmic market makers to continue to tilt the market to their advantage, but leaving retail traders without adequate information to compete effectively.
“The whole market is a meme stock, labeling small to mid cap stocks as meme stocks is manipulation in itself by fomentation. If the SEC did any research, it would know that most of the “meme stocks” were pumped and dumped through Silicon Valley algorithms and hedge funds to recoup cash from their short position losses and risky bets” , wrote the Redditor “Thorbeans”.
The SEC videos, which apparently pay homage to American comedy sketches like “Saturday Night Live”, depict a group of young people competing on an imaginary game show called “Investomania”. A contestant who chooses to invest in “meme stocks” sees all their money disappear before being rewarded with a pie in the face.
A second video pokes fun at investors who have bought celebrity-endorsed cryptocurrencies. A few years ago, the SEC repeatedly warned celebrities not to continue selling shilling digital coins.
The videos end with the same voiceover: “Investing is not a game, always do your research before making an investment decision. To learn more, visit Investor.gov.
While the videos were intended to engage retail investors, the SEC opted to disable comments on the videos. The agency did not respond to a request for comment.
In more than 800 replies to the original Reddit thread about the videos, users hurled insults at the SEC. One claimed that the video “makes me want to double stonk memes.”
A repost of this thread on “Superstonk” – a subreddit dedicated to trading “meme stocks” like GameStop GME,
and AMC AMC,
— sparked hundreds of additional responses, with one user complaining that the video was “proof that their system doesn’t work without retail money.”
Another joked: “My only complaint is that Janet Yellen didn’t appear at the end and shout ‘That’s it people!'”